Insurance Sector Sees 6.6% Growth in Revenue to 1,148.2 Billion MTND as of March 2024
The insurance sector has achieved a 6.6% increase in revenue as of March 2024, reaching 1,148.2 billion MTND. Life and Capitalization insurance premiums have seen a 14.4% improvement (243.9 billion MTND), while Non-Life premiums have grown by 4.6% (904.3 billion MTND). The growth rate of Life insurance activities continues to outpace that of Non-Life insurance.
Non-Life Insurance Segment Dominated by Automobile Insurance
The Non-Life insurance segment is dominated by Automobile insurance, which holds a 41.5% market share with premiums of 476.9 billion MTND. This is followed by Group Health insurance (172.8 billion MTND) and Fire insurance (131.1 billion MTND). The Transport insurance segment has not exceeded 26.8 billion MTND. Subscriptions to Hail and Livestock Mortality insurance policies remain very low, at 2.3 billion MTND. These two segments have recorded respective declines of 3.4% and 21.9% year-over-year, indicating a problem in the country's economic growth.
Economic Growth Concerns
The decline in insurance for this activity illustrates a sluggish economic dynamic. In particular, transportation facilitates the integration of diverse regions and the creation of expanded markets necessary for the development of a modern economy, allowing for better utilization of production factors such as accessibility and mobility. The regression of insurance in this activity is a reflection of an economy in decline.
Claims and Indemnifications
The number of reported claims in the Automobile insurance branch has slightly decreased by 0.2%, to 76,739 incidents. A total of 1,518 fires have been recorded, compared to 727 for Transport.
Indemnifications paid out have totaled 427.7 billion MTND, an 8.0% increase year-over-year. The majority of these indemnifications have been consumed by automobile insurance holders (179.6 billion MTND), a decrease of 2.2% compared to March 2023. Similarly, indemnifications for Fire insurance have decreased by 4.5%, to 12.2 billion MTND. Growth has been observed in payments to Life and Capitalization insurance policyholders (+34.0% to 96.8 billion MTND), Group Health insurance (+7.0% to 117.8 billion MTND), and Transport insurance (+4.6% to 5.3 billion MTND).
Assets and Provisions
Finally, assets placed in representation of technical provisions have totaled 9,421.5 billion MTND, a 6.7% increase compared to the same period in 2023. This is promising for the rest of the year, especially if the claims frequency remains moderate.